Trade-Ideas: First Solar (FSLR) Is Today's Post-Market Leader Stock - TheStreet

Trade-Ideas LLC identified

First Solar

(

FSLR

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified First Solar as such a stock due to the following factors:

  • FSLR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.2 million.
  • FSLR is up 11.8% today from today's close.

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More details on FSLR:

First Solar, Inc. provides solar energy solutions worldwide. The company operates through two segments, Components and Systems. The Components segment designs, manufactures, and sells solar modules that convert sunlight into electricity. FSLR has a PE ratio of 16. Currently there are 10 analysts that rate First Solar a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for First Solar has been 2.0 million shares per day over the past 30 days. First Solar has a market cap of $5.0 billion and is part of the technology sector and electronics industry. The stock has a beta of 2.41 and a short float of 8.2% with 4.35 days to cover. Shares are up 14% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates First Solar as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, increase in net income and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • FSLR's very impressive revenue growth greatly exceeded the industry average of 13.4%. Since the same quarter one year prior, revenues leaped by 64.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FSLR's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FSLR has a quick ratio of 2.45, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 1986.8% when compared to the same quarter one year prior, rising from $4.53 million to $94.49 million.
  • FIRST SOLAR INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, FIRST SOLAR INC increased its bottom line by earning $3.90 versus $3.61 in the prior year. For the next year, the market is expecting a contraction of 12.1% in earnings ($3.43 versus $3.90).

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